UPDATE 3-Yamana, Agnico reach C$3.9 bln deal with Osisko to thwart Goldcorp takeover bid

Wed Apr 16, 2014 12:10pm EDT
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(Adds analyst's comments, details on the breakdown of the offer)

By Allison Martell and Euan Rocha

TORONTO, April 16 (Reuters) - Canada's Osisko Mining Corp said on Wednesday it has reached a C$3.9 billion ($3.6 billion) deal to sell most of its assets to Yamana Gold Inc and Agnico Eagle Mines Ltd as it battles to thwart a hostile takeover bid from Goldcorp Inc, one of the world's biggest gold miners.

Osisko said the implied value of the new deal is C$8.15 a share, an 11 percent premium to the implied value of a sweetened offer that was announced by Goldcorp last week.

The new white knight deal replaces a more complex earlier proposal that involved a 50 percent sale of Osisko's assets to Yamana, along with a cash infusion from two Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec.

"In our opinion the complexity of this new offer is far less than that of the previously announced Yamana partnership, and we believe this new bid will be well regarded by shareholders," Desjardins analyst Michael Parkin said in a note to clients.

Canadian gold miners Yamana and Agnico Eagle are jostling with Vancouver-based Goldcorp to win control of Osisko's flagship asset: the Canadian Malartic gold mine in the province of Quebec. The mine is attractive as it is a huge, low-cost asset located in a stable political jurisdiction.

Under the revised Yamana-Agnico deal, Osisko shareholders would receive cash, shares of Yamana and Agnico Eagle, and shares of a new Osisko entity.

The new Osisko spinout would get royalties, cash and some exploration assets in Mexico. Osisko said the total value of the deal is C$3.9 billion, or C$8.15 a share.   Continued...